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Alekssandra [29.7K]
3 years ago
15

For a bond issue that sells for more than the bond face amount, the effective interest rate is: Multiple Choice Less than the ra

te stated on the face of the bond. The rate printed on the face of the bond. More than the rate stated on the face of the bond. The Wall Street Journal prime rate.
Business
1 answer:
pav-90 [236]3 years ago
5 0

Answer:

First answer

Explanation:

Bond interest rate is related to current interest rates and the perceived risk of the issuer. Therefore, if the bond sells at a price that is higher than its face value, it sells at the rate that is higher than effective interest rate. If the coupon rate is higher than market rate, bond prices tend to go higher. Coupon rate influence bond's price by influencing its competitiveness and value in the open market.

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Sherriane Baby Products’ salaries expense was $15.1 million. Required: What is the amount of cash Sherriane paid to employees du
beks73 [17]

Answer:

Summary entry is shown below

Explanation:

The preparation of the summary entry is shown below

Salary expense $15.1 million

     To Cash $9.4 million

     To Salary payable $5.7 million

(Being the salary expense is recorded)

Simply we debited the salary expense by $15.1 million as the expenses account is debited while on the other hand, the cash is paid for $9.4 million and the salary payable is credited for $5.7 million

6 0
3 years ago
Suppose that the market portfolio is equally likely to increase by 24% or decrease by 8%. Security "X" goes up on average by 29%
Alex

Answer:

The expected return on security with a beta of 0.8 is closest to 7.2%.

Explanation:

This can be determined as follows:

Since the return of security Z remains at 4% despite the change in the market, security Z is the risk-free asset.

Note that a risk free asset is an asset which its returns does not change with change in the market.

Using the Capital Asset Pricing Model (CAPM) formula, we have:

Er = Rf + (B * MPR) ............................................ (1)

Where;

ER = Expected return = ?

Rf = Risk-free rate = Rate of return of security z = 4%

B = Beta = 0.8

MPR = Market risk premium = Expected return on the market rate - Risk-free rate

Expected return on the market rate = (50% * 24%) + (50% *(-8%)) = 8%

Therefore, we have:

MPR = 8% - 4% = 4%

Substituting the values into equation (1), we have

Er = 4% + (0.8 * 4%)

Er = 0.072, or 7.2%

Therefore, the expected return on security with a beta of 0.8 is closest to 7.2%.

8 0
3 years ago
What do you think would make women's contributions to entrepreneurship more visible and less surprising to people?
ohaa [14]

Answer: They must continue with their work, which goes beyond being housewives.

Explanation: Today women have achieved a lot to be seen as beings who have the ability to undertake large-scale projects. Women should continue working, positioning themselves in direct positions, undertaking, and above all, supporting each other. Women must continue to demonstrate that they too are capable of occupying positions that have been seen only for men. Today we have women presidents of nations, CEOs and giving more contributions to society.

3 0
2 years ago
Read 2 more answers
Maryanne purchases a water bed online. However, when it is delivered to Maryanne's house, the measurements of the bed do not mat
Inessa05 [86]
It's the letter C. because if she would of ask about the return policy she won't have this problem
5 0
3 years ago
The study of the process by which people and countries make choices in the development and distribution of its resources, goods,
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ECONOMICS   
economics refers to the study of the process by which people and countries make choices in the development and distribution of its resources, goods, and services . 
 The process of a country deciding how to use the income from its resources on goods and services is an example of an economic system at work .
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3 years ago
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